Transferring
of money to friend or family member in another country is known as remittances.
Major portion of population is currently depend on this money, which is often
used for the food, housing, education, basic house hold goods and health care
costs. As per the World Bank report, the international remittances expected to
reach above USD 500 billion in 2017, the global community is doing more
research in the development of the technologies that will improve the
efficiency, safety and ultimately positive impact of these cross border
transactions. Transferring money from one country to another country is very
much expensive because there are limited connections between financial
institutions and systems. But in the recent trend development in the technology
eliminate the traditional remittance mean waiting in line for several hours
just to get money wired to pay bills, and they almost always come with loads of
fees. According to the report analysis, ‘Remittance
Market Research Report’ suggests that change in the technology of
transfer of money has been changing the workflow and all the processes in the
international money transfer industry and it is also expected that the market remittance
have a significant growth with the more innovations in the technology.
In
the present era urban population has increases the usage of mobile and
digitization of money are the two biggest opportunities that are diversifying
the way of transferring the money. In the developed and developing countries
the usage of smart phones is uncontrolled. In the research it is observed that
the number of smart phones users are growing worldwide and will surpass 2
billion in the coming years. Across the globe, the usage of internet technology
is growing rapidly in the modern trend which strictly reduce the cost and
efforts associated with sending money back home. The introduction of mobile
technology is helping to break down these issues of transferring the money from
one country of another country. With this technology of mobile and internet
anyone can now transfer the money very easily and quickly. Digital Remittances
can help people everywhere make their lives easier by allowing them to do what
they want to do with their money. Therefore, the technology of internet in the
remittance industry plays significant role in today’s trend. With the help of
internet technology, the growth of digital remittances market is driven by rise
in automation and digitization, less time consuming and reduced remittance cost
and growth in adoption of financial services. Moreover, many companies are
offering the latest integrated technologies at a reasonable cost which are
expected to drive the market efficiently. According to the report analysis, ‘Remittance
Industry Research Report’ suggests that integration is the key to
advancement in technology in the global digital remittance system market and
expected to grow more significantly with the more innovations.
The
remittance industry is majorly consolidated and concentrated among Money Gram,
Western Union and others. Moreover, the remaining portion of market is
fragmented with smaller players which are making market more competitive and
the global remittance industry is undergoing with the significant change in the
technology of internet. Companies such as Ripple are looking to change the way
cross-border remittance is done. It is observed that Ripple has tied up with 25
banks globally. Moreover, Earth port is also a leading player in this market
which got approvals from Reserve Bank of India (RBI).
According
the research of World Bank, India is the largest country of Migrants remittance
inflows with USD 68,968 million and percentage of 11.2% in the world. However,
Mexico, France, Pakistan, China, Nigeria, Germany, Philippines, Bangladesh and
Vietnam are the top countries which receives significant amount of remittance
volume. In UAE the major transfer of money is done with Ripple for developing a
remittance transfer mechanism that would be faster, cheaper and efficient to
the consumer.
Remittance
industry will grow rapidly as the transfer of money can be done very easily
with the more innovations the internet technology and it is also proof that
transfer of money with the internet technology is secured and most efficient
way of transferring. Therefore, the market of remittance is growing rapidly
with the technology of internet in the coming years.
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Contact Us:
Ken
Research
Ankur
Gupta, Head Marketing & Communications
0124-4230204
